LA Credit Services Organization Bond

You can obtain a Louisiana credit services organization bond online

Great bond prices available

Problematic finances? Not a problem!

Learn what surety bonds are, the different types of surety bonds, and how you can get bonded.Surety bonds are so confusing. I was told I had to post one but I have no idea what they are and which one is right for me. - Don't worry about it. I'll tell you everything about them. In general, surety bonds are not designed to protect your business, but rather to protect the public from dishonest business practices. A surety bond is a three-way agreement between you (the Principal), the Obligee (typically, a government department) and the Surety bond company which ensures that the bonded principal will comply with all the rules and regulations. There are four main types of surety bonds: license and permit bonds, contract bonds, court bonds and fidelity bonds. - I understand but aren't they all the same? Not exactly. Contract bonds are sometimes referred to as construction bonds. Contract bonds are designed to guarantee the performance of obligations under a contract. In other words, contract bonds protect the project owner (the obligee) by guaranteeing that the contractor will perform in accordance with the terms of the contract. There are several types of contract bonds, such as bid bonds, performance bonds and among others subdivision bonds. - Thanks, John! What about license bonds? What is the difference between license and contract bonds? License and permit bonds can be required either by the federal government, the state or the municipality. It is a prerequisite to receive a license or permit to engage in certain business activities. There are a number of license and permit bonds, such as auto dealer bonds, contractor license bonds, freight broker bonds, mortgage broker bonds and many more. For example, auto dealer bonds are required by States Department of Motor Vehicles and every state has their own bond requirements. - Thanks, John! Now I know what contract and license bonds are. What about court bonds? - Court bonds guarantee that the fiduciary will fulfill his or her responsibilities as ordered by the law or the court. There are a few types of court bonds, such as appeal bonds, guardian bonds and probate bonds. - I understand that surety bonds are designed to protect the public, but are there bonds that protect me as a business? - Yes. Fidelity bonds, also referred to as fidelity bond insurance, will protect you and your clients from any employee dishonesty, such as theft, embezzlement or forgery. You can think of fidelity bonds more as a traditional insurance policy than a typical surety bond. And these are the main types of bonds. I hope this explanation helped you figure out which one you need for your business. - Thanks, John! Now I know what surety bonds are and how they work.

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What Is a Louisiana Credit Services Organization Bond?

For businesses who want to register as credit services organizations in Louisiana, the licensing body is the state Attorney General’s Office at the Department of Justice. A credit services organization bond is one of the main requirements that you have to meet in order to be allowed to run your operations.

In practical terms, the surety bond protects the state and consumers who use your services. If you engage in fraud or misuse while acting as a credit services organization, they can seek a reimbursement by making a claim on your bond.

Just like the rest of Louisiana surety bonds, this bond is a three-party contract. Your credit services organization that needs the bonding is the principal. The Louisiana Department of Justice is the obligee which imposes the requirement. The entity that provides the bond is the surety.

Frequently Asked Questions

Who is required to obtain such a bond?

The Attorney General’s Office of the Department of Justice requires all entities that want to register as credit services organizations, also known as credit repair services providers, to obtain a bond. The amount required is $100,000.

How much does it cost to get a credit services organization bond?

The bond amount that you have to provide as a part of your registration is $100,000. The bond premium that you need to pay, on the other hand, is only a percentage of this amount. The typical rates for applicants with good credit are between 1% and 3%.

Surety Bond Cost Based on Credit Score

Surety bond name

Surety bond amount

Above 700

Between 650-699

Between 600-649

Below 599

Louisiana credit services organization bond

$100,000

$750-$1,500

$1,000-$2,500

$2,500-$5,000

$5,000-$10,000

How is your surety bond cost determined? The bond amount is only one of the factors. It also depends on your personal credit score and business financials. Your surety may also want to consider your assets and liquidity, as well as professional experience in the field. The bond price you will get will be lower if your profile is strong.

What if I have problematic finances?

Lance Surety Bonds runs its Bad Credit Surety Bonds program to help out applicants with financial issues. If you have problems such as low credit scores, tax liens, bankruptcies, or civil judgements, you can benefit from this option.

The rates are in the range of 5% to 10% of the bond amount. The higher prices compensate for the increased bonding risk. As we can shop around for you from our numerous A-rated, T-listed surety company partners, we can still get you a great bond price.

How do I get bonded?

Do you want to learn more about the bonding process? You can refer to our How to Get Bonded page, which is an extensive resource on the topic. For any queries, you can call us at (877) 514-5146. Lance Surety Bonds’ specialists will be happy to help you.

What happens when a bond claim occurs?

As your credit repair services bond is not insurance for you, you may get a bond claim in case you fail to follow the law. A customer who has been harmed by any illegal actions on your side can seek a reimbursement of up to the penal sum of the bond, which is $100,000. These may include falsifying of documents, failure to provide contracted services, or knowingly misleading consumers.

To ensure the proper compensation of the claimant, the surety may cover the costs on proven claims at first. You need to repay it fully soon after. Thus, bond claims are to be avoided, as they can lead to grave financial consequences for your organization. They can also be an obstacle for getting bonded in the future.

What Our Clients Have To Say?

Quick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!

Andrew Poincot

Long story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!

Margie Martinez

We decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!